U.S. Markets Volatile; Dip Buyers fight Bears
Stocks in the U.S. market moved sharply around in the first few hours of trading, continuing on its 4th day of volatile trade this week.
The S&P 500 fell more than 1% after opening but managed to gain back a bit. The NASDAQ 100 is trading flat after opening in the red. Every day of this week, the S&P 500 has moved more than 1%. European indices, which were in deep red when the Indian market closed, have slowly managed to gain back. Stocks were in the red earlier with Natural Gas prices in Europe jumping nearly 40%. Russia’s President Vladimir Putin said the country is ready to help, and things have now cooled down.
Stoxx Europe is down by 0.94%
Dow Jones is down by 0.77%
NASDAQ is down by 0.38%
Tesco Jumps On Higher Profits
Britain’s biggest retailer- Tesco on Wednesday raised its full-year earnings outlook after its store and online operations reported a better-than-expected 16.6% increase in profit. The sales helped the company to reduce net debt by 1.7 billion pounds (Rs 17,200 crore)) since February, and so it is planning to buy back shares. At the time of writing the stock is 5% up.
German August Industrial Orders Slip More Than Expected
Data from Federal Statistics Office on Wednesday showed that German industrial orders in August dropped more than expected due to weaker demand from other countries. After reporting unusually strong gains in June and July due to major contracts, orders for goods ‘Made in Germany’ fell by 7.7% in August. Anyway, overall industrial orders are still at a higher level and are already 8.5% above their pre-crisis levels of February 2020.
U.S. Private Payrolls Top Estimates
The ADP National Employment Report showed on Wednesday that U.S private payrolls rose above estimates in September as more businesses like restaurants started operating. Private payrolls increased by 568,000 jobs in September and the numbers for August were revised lower to 340,000 jobs instead of the initially reported 374,000.
Crude Oil Prices Fall Back Down with Supplies Increasing
Crude Oil prices in New York moved down after a U.S. government report showed that its stockpiles of crude increased by more than expected. Futures of West Texas Intermediate(WTI) Crude Oil in New York has fallen nearly 2% today. The commodity is still trading above an important level above $76/barrel.
Russia also signaled that it would increase supplies to Europe to help ease the current natural gas crisis.
Russia To Stabilize Soaring Global Energy Prices
The crude oil price fell heavily on Wednesday after Russian President Vladimir Putin said the country is ready to stabilize soaring global energy prices and would boost supplies to Europe. Russia has been limiting the supplies for many days and crude oil prices continued hitting multi-year highs. He also said that the jump in oil price is a threat to industrial activity and would cause inflation to rise. U.S crude oil price has fallen more than 3% from highs.
Sweden And Denmark To Pause The Use Of Moderna’s Covid-19 Vaccine For Younger People
Sweden and Denmark said on Wednesday the countries have decided to pause the use of Moderna’s COVID-19 vaccine for younger people because of possible rare side effects. The side effects include Myocarditis, which is an inflammation of the heart muscle and can reduce the heart’s ability. Sweden and Denmark now recommends the Comirnaty vaccine, from Pfizer/BioNTech